The Traderszone Network

Published in TZ Latest News 24 June, 2017 by The TZ Newswire Staff

Using a hedge instead of a stop

Recently, on my FXCM live account I have been experimenting with hedging. After studying this a while, it occured to me that this may actually be a better approach than a traditional stop.

Trading XAU/USD and usdollar CFDs, I have found it more profitable to use a longer time frame. Currently, I trade the 1 hour chart.

Trouble with this is that there is a lot of “noise” in 1 hour that can knock you out of the trade if you use a traditional stop. There is a real opportunity cost…

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